Re: Margin
Once, perhaps twice each year the Margin Gods demand a sacrifice. During a recent downturn(best forgotten), I did as follows
1. Sold 2/3ds my Aol (sob), but bought a call.
2. Sold 1/2 my Yhoo, (sniff)but bought a call.
3. Sold everything but Dell that was a loser.
Some of these were non-marginable stocks so it helped a lot but
the Gods were unappeased. They were after some Virgin Dell stock
After a week of fighting, I gave them what they wanted (some Dell I had purchased recently at $40/sh.) And bought some Leaps.
Within hours, Dell has turned around and started back up from $36 to $48.
Summary:
Never having had experience with a margin call, I had no idea how it was handled and have no desire to learn. I had plans in place to deal with it and ( generally only) followed the plan without losing much Dell. Gained some calls or leaps on yhoo, aol, Dell.
Retained enough equity to have fun with small amounts of aware, qcom, cnet, rnwk.
The reports of Dell's demise may be greatly exaggerated, while CPQ looks like a basket case.
Good luck
Sig
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